CBSE Class 11 Accountancy HOTs Bill of Exchange

CBSE Class 11 Accountancy Chapter 8 Bill of Exchange Fill In The Blanks

Question. Ram makes a promise to pay Rs.20,000 to Mohan after 1 month through …………..(Negotiable instrument).
Answer. Promissory note

Question. If the bill is endorsed in the favour of creditor then there will ………. in the books of drawer.
Answer. No entry

Question. Due to acceptance of Bill of Rs.5000 from Ram such transaction not affected ……….position of Ram.
Answer. Financial

Question. There is contingent liability of Mr. Mohan towards bank because he gets the bill………..
Answer. Discounted

Question. …….a/c is debited for Noting charges.
Answer. Accepter’s

Question. Purchases a/c Dr.
To Bank a/c
To ………….a/c
(Bought goods from Mohan and half payment made through cheque and bill accepted for remaining balance)
Answer. Bills payable

Question. Sold goods to Rani Rs.5000 ,Trade Discount @10%, cash discount @2%, a bill drawn for one month for dues of Rs………..
Answer. Rs.4,500

Question. Bill of Rs.5,000 receivable after two months discounted @ 6% p.a., after discounting bank will pay Rs. ………
Answer. 4550

Question. A bill was drawn on 12th of July for one month then maturity date will be …….
Answer. 14th august

Question. A bill was drawn on Aug 21, 2018 for one month, if maturity date is declared emergency holiday then due date will be…………
Answer. 25th September

CBSE Class 11 Accountancy Chapter 8 Bill of Exchange True and False

1. Bill draws on 1 January for 20 days then due date will be 24 January.True
2. Bill draws on 1 January for 22 days then due date wil be 26 January False
3. Bill draws on 28 January for 3 months then due date will be 1 May. True
4. The promise to make payment must be unconditional. For example,” I promise to pay Rs. 10,000 as soon as possible”. False
5. Payee can be change in a bill of exchange but payer cannot be change in any case.True
6. Maturity date for a bill written on 28 Nov 2015 for three months and 28 January 2016 for one month will be same i.e.2nd March. True
7. Ram draws a bill on Shyam which is ‘bill at sight’ on 28 March and pay as soon as possible. Then days of grace will be added for computing due date.False
8. On the due date, when the intimation of actual realisation of the bill is received from the bank:-
Following entry will be passed.
Bank A/c Dr
To bills sent for collection A/c
True
9. When drawer retires his acceptance before the due date.
B/P A/c Dr
To Rebate on bill A/c
To Bank A/c
False
10. A bill receivable for Rs.10,000, which had been discounted for Rs.9,700, is dishonoured and the bank paid Rs.20 as noting charge. Following entry will be passed by drawer
Drawee A/c Dr
To Bank A/c
True
11. A bill for 40,000 was discounted by Ganesh with Axis Bank for Rs.38,500. At maturity, the bill was dishonoured and bank notified it for Rs.600. Rs. 40,600 deducted by bank from the Ganesh Bank balance. True
12. A bill for Rs.75,000 is discounted with the bank for Rs.72,000. The bill is dishonoured at maturity. The drawee pays 40% in full settlement. Then amount of bad debts was 45500. False

CBSE Class 11 Accountancy Chapter 8 Bill of Exchange MCQs

Question. If Pankaj’s acceptance which was discounted from bank is dishonoured then the amount will be debited in our books
a. Pankaj
b. Bank
c. Bills Receivable account
d. None of the above
Answer. (A)

Question. If Pankaj’s acceptance which was endorsed to Mrs Jivika is dishonoured then the amount will be debited in our books
a. Pankaj
b. Jivika
c. Bills Receivable account
d. None of the above
Answer. (A)

Question. If Sohan’s acceptance which was discounted from bank is dishonoured then the amount will be credited in our books
a. Sohan
b. Bank
c. Bills Receivable account
d. None of the above
Answer. (B)

Question. If Mohan’s acceptance which was endorsed to Mrs Jivika is dishonoured then the amount will be Credited in our books
a. Mohan
b. Jivika
c. Bills Receivable account
d. None of the above
Answer. (B)

Question. Rebate is calculate for the period of
a. Drawing date to Maturity day
b. Payment day to Maturity day
c. Drawing date to Payment date
d. None of the above
Answer. (B)

Question. Which one is Negotiable instruments
a. Bill of exchange
b. Promissory Note
c. Bankers cheque
d. All of the these
Answer. (D)

Question. Bill draw on 23rd Oct.2018 for three months due date is
a. 23rd Jan.2019
b. 24th Jan.2019
c. 25th jan.2019
d. 26th jan.2019
Answer. (C)

Question. A bill draw on 27th Dec.2015 for two months due date is
a. 27th Feb. 2016
b. 1st Mar. 2016
c. 2nd Mar. 2016
d. None of above
Answer. (A)

Question. A bill draw on 27th Dec.2018 for two months due date is
a. 27th Feb. 2019
b. 1st Mar. 2019
c. 2nd Mar. 2019
d. None of above
Answer. (C)

CBSE Class 11 Accountancy Chapter 8 Bill of Exchange Match The Following

Question. Following is paid to whom-
i) Noting Charges                          a) Drawer
ii) Discounting charges on            b) Drawee
dishonour of bill
iii) Interest on renewal of bill        c) Notary Public                                                                  
                                                    d) Bank
Answer. C, B & A

Question. Bill draws on Maturity Date
i) 1st July (for Two month)                a) 4th Sep.
ii) 15th July ( for Three months)        b) 4th Dec.
iii) 1st August (for four months)
                                                          c) 18thOct.
Answer. A, C, & B

Question. Identify-
i) Authenticates the fact of dishonour                  a) Drawee
ii) Authenticates the fact that bill is accepted       b) Drawer
                                                                       c) Notary Public
Answer. C & B

Question. Identify-
i) B/R endorsed dishonoured are debited to                  a) Bank A/C
ii) Bill honoured during the year will be debited to         b) B/P A/C
                                                                                       c) Debtors A/C
Answer. C & B

Question. Identify-
i) Noting charges is paid when                  a) got discounted from bank
the bill of
exchange is
ii) The rebate on the bill is received           b) Paid before maturity
by the
drawee when the bill is
                                                                  c) dishonoured on date of maturity
Answer. C & B

Question. Identify-
i) Drawer is also known as             a) Endorser
ii) Endorsee is also known as        b) Holder of the bill
                                                       c) Both a & b
Answer. A & B

Question. Identify-
i) Days of grace are not allowed when     a) It is a bill payable on demand
ii) Days of grace are allowed when          b) It is a bill after sight
                                                                c) It is a national holiday
Answer. A & B

Question. Identify-
i) On the basis of place, type of bill        a) Foreign bill
of exchange is
ii) On the basis of time, type of bill         b) Trade bill
of exchange is
                                                              c) On demand
                                                              d) Accommodation bill
Answer. A & C